Ann: Trading Halt, page-13

Yep. Look at a series of significant discoveries over the last 2-3 years. CHN, DEG, RTR and others. I'm not saying we're in that group, too early for that, but there is huge money out there that wants to be in commodities for the next few years and wants to be in things where the downside is reducing but the upside is expanding. That is the definition of an explorer that's recently made a discovery.

I know I sound like a ramper here but I'll back my history of balanced posting on KTA. What we have at Mt Clere has enormous scope that is not well understood by the market yet.

We have 2300km2+ in this area.
The current clay targets at Tower prospect are tested only over 6km2 with much more open than that
We have multiple targets that are similar to Tower, with later acquisitions behind in permitting.
It's not inconceivable that the genuine lateritic clay targets extend over hundreds of square kilometres (economic zones would be a portion of that)

Then there are the alluvial sand targets.
This area is an extensive and very effective trap of eroded alluvial materials, again with many hundreds of square kilometres of genuine prospecting area.
Our initial drilling, in the same program as Tower, was 44 holes and another smaller fence (7 holes off the top of my head). Some of these pulled out at 60m placer depth and still open. There is a lot of alluvial material in placer deposits and we should get the results from that drilling in the next few weeks I assume - maybe around the same time as the balance of holes from Tower. In the meantime we can look at historic sampling records for possible indications of what might come out of the alluvial sands:

Historic sampling by other explorers, targeting other things, returned good to outstanding grades in monazites and heavy mineral sands eg:

BHP (1985-87 targeting Pb-Zn-Ag)
- heavy mineral sampling showed abundant monazite in panning in more than 20% of samples. Abundant meant greater than 50%. Nearly 50% of samples returned at least 30% monazite. (Panning is prone to higher concentration because you're starting with what's visibly prospective)

Astro (2005/6 targeting diamonds)
- concentrate sampling found monazite to 48%, zircon to 60%, ilmenite to 29% and leucoxene to 20% as well as rare earth elements.

All Star Minerals ( 2006)
- bulk samples that returned 2-3% monazite, 1.4% zircon, 40-44% ilmenite, 9.9% titanium as well as rare earth elements.

This is random dreaming on my part (way ahead of any actual data) but I think we have prospect of multiple discoveries in the shallow regolith and alluvial deposits across Mt Clere - before considering the EM targets at greater depth that have got our consultant geophysicist excited. The fantasy question for me, with the trends underway for REEs, monazite and HMS is to wonder if we could be looking at several assets at Mt Clere worth in the hundreds of millions and a billion dollar cap at some stage in the future?

Lots to do but lots to work with and that's where this cap raising matters. Now that we are into something real, a good raise now could result in major returns in the market cap. This is as easy as drilling exploration gets - very shallow, relatively cheap exploration drilling in pretty uncomplicated geology. It won't take $50-100million to understand this area like is needed for the deeper rock targets of the big success stories I mentioned at the start.